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"This paper develops a model where firms make state-dependent decisions on both pricing and acquisition of information. It is shown that when information is not perfect, menu costs combined with the aggregate price level serving as an endogenous public signal generate rigidity in price setting...
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credit risk. We consider a context in which systemic default induces externalities that amplify the private cost of financial …
Persistent link: https://www.econbiz.de/10013066407
This paper develops a model where firms make state-dependent decisions on both pricing and acquisition of information. It is shown that when information is not perfect, menu costs combined with the aggregate price level serving as an endogenous public signal generate rigidity in price setting...
Persistent link: https://www.econbiz.de/10012770875
This paper develops a model where firms make state-dependent decisions on both pricing and acquisition of information. It is shown that when information is not perfect, menu costs combined with the aggregate price level serving as an endogenous public signal generate rigidity in price setting...
Persistent link: https://www.econbiz.de/10012720500
This paper develops a model where firms make state-dependent decisions on both pricing and acquisition of information. It is shown that when information is not perfect, menu costs combined with the aggregate price level serving as an endogenous public signal generate rigidity in price setting...
Persistent link: https://www.econbiz.de/10012464463
We consider strategic issues in one-to-one matching with externalities. We show that no core (stable) mechanism is … strategy-proof, extending an impossibility result of Roth (1982) obtained in the absence of externalities. Moreover, we show … result of Demange et al. (1987) obtained in the absence of externalities …
Persistent link: https://www.econbiz.de/10012845795